BRBSMEDIUM SIGNALOPERATIONAL10-K

BRBS has substantially scaled back its fintech banking-as-a-service operations while experiencing deposit outflows and balance sheet contraction.

The company has moved from describing fintech partnerships as an ongoing core business to a much more limited presence, with only one remaining partner (Upgrade, Inc.) for indirect lending services. This operational pivot appears to be driving meaningful deposit outflows and balance sheet shrinkage, suggesting either strategic repositioning or client departures from their BaaS platform.

Comparing 2026-03-12 vs 2025-03-10View on EDGAR →
FINANCIAL ANALYSIS

BRBS experienced broad-based contraction with total assets declining 11.1% to $2.4B and deposits falling 12.3% to $1.9B, consistent with the scaling back of fintech partnerships. Net interest income dropped 14.1% to $137.8M while provision for credit losses increased 38.1% to $24.7M, indicating both revenue pressure and emerging credit concerns. The overall picture suggests a company in transition, moving away from the fintech-dependent deposit model that previously supported its growth.

FINANCIAL STATEMENT CHANGES
Provision for Credit Losses
P&L
+38.1%
$17.9M→$24.7M

Credit loss provisions surged 38.1% — management flagging significant deterioration in loan quality ahead.

Net Interest Income
P&L
-14.1%
$160.3M→$137.8M

Net interest income declined 14.1% — margin compression from rate changes or funding cost increases.

Total Liabilities
Balance Sheet
-12.5%
$2.4B→$2.1B

Liabilities reduced 12.5% — deleveraging improves balance sheet strength and financial flexibility.

Total Deposits
Balance Sheet
-12.3%
$2.2B→$1.9B

Deposit base contracted 12.3% — monitor funding costs and liquidity position carefully.

Total Assets
Balance Sheet
-11.1%
$2.7B→$2.4B

Total assets contracted 11.1% — asset sales, write-downs, or balance sheet optimization underway.

LANGUAGE CHANGES
NEW — 2026-03-12
PRIOR — 2025-03-10
ADDED
The registrant h ad 91,340,481 shares of common stock, no par value per share, outstanding as of March 2, 2026.
The Bank serves businesses, professionals, consumers, nonprofits, and municipalities with a wide variety of financial services, including retail and commercial banking.
The Company historically had partnerships with financial technology ("fintech") providers, through which it provided indirect depository services (referred to as banking-as-a-service or "BaaS") to both consumers and businesses.
Fintech companies provided technologies to enable the delivery of digital bank services and were a source of interest and fee income, and deposits.
The loans are then purchased by the fintech partner or other third-party generally up to three days from origination.
As of December 31, 2025, the Company offered indirect fintech lending services conducted through Upgrade, Inc.
The Company has been terminating its indirect fintech lending relationships and expects to be completely exited in 2026.
As of December 31, 2025, the Company had total assets of approximately $2.43 billion, total gross loans of approximately $1.87 billion, total deposits of approximately $1.91 billion, and stockholders equity of approximately $323.7 million.
Regulatory Matters During much of 2025, the Bank was subject to a Consent Order (the "Consent Order") issued on January 24, 2024 by its primary regulator, the Office of the Comptroller of the Currency (the "OCC").
The Consent Order primarily concerned the Bank s fintech operations and required the Bank to continue enhancing its controls for assessing and managing risks stemming from its fintech partnerships and added time frames for meeting certain of the directives, required the Bank to submit a strategic plan and a capital plan, and required the Bank to maintain a leverage ratio of 10.0% and a total capital ratio 1 of 13.0%, referred to as minimum capital ratios.
REMOVED
The registrant had 87,789,843 shares of common stock, no par value per share, outstanding as of March 3, 2025.
The Bank serves businesses, professionals, consumers, nonprofits, and municipalities with a wide variety of financial services, including retail and commercial banking, and mortgage banking lending.
The Bank s mortgage banking activities include a retail mortgage business operating as Monarch Mortgage.
The Company conducted a wholesale mortgage business operating as LenderSelect Mortgage Group until it was sold on May 15, 2023.
Over the past several years, the Company has had partnerships with financial technology ("fintech") providers, through which it provided indirect depository services (referred to as banking-as-a-service or "BaaS") to both consumers and businesses.
Fintech companies provide technologies to enable the delivery of digital bank services and are a source of interest and fee income, and deposits.
At the end of 2023, the Bank had active fintech BaaS partnerships, which included Unit Finance, Inc.
Pursuant to the Unit partnership, the Bank had subpartner relationships that target certain niches of end users, where Unit provides the technology platform to access banking activities.
The loans are then purchased by the fintech partner or other third-party within up to 15 days from origination.
As of the end of 2023, the Company also partnered with Flexible Finance, Inc.
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